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W Gwyn Jones, BSc, FCCA Strategic Director for Corporate Resources Ceredigion County Council Canolfan Rheidol Rhodfa Padarn Llanbadarn Fawr Aberystwyth SY23 3UE Tel: 01970 617911 E-mail: [email protected]
Cyngor Sir CEREDIGION
County Council
STATEMENT OF ACCOUNTS For the year ending 31st March 2013
Audited
CONTENTS
Page No
Explanatory Foreword 2
Statement of Responsibilities for the Statement of Accounts 6
Auditor’s Report 7
Comprehensive Income and Expenditure Statement 9
Movement in Reserves Statement 9
Balance Sheet 10
Notes to the Statement of Accounts 11
Annual Governance Statement 19
EXPLANATORY FOREWORD
The Statement of Accounts has been prepared to meet the requirements of the Public Audit (Wales) Act 2004 (and as further specified in the Accounts and Audit Regulations 2005) and fully reflects the Code of Practice on Authority Accounting in the United Kingdom 2012/13 requirements for accounting statements. The document offers a summary of the Joint Committee’s overall financial position and a number of accounting statements, which show the range and scale, in financial terms, of the Joint Committee’s activities.
BACKGROUND
Trafnidiaeth Canolbarth Cymru (TraCC) is a transport consortium, established in 2003, for the Mid Wales region. It is a joint committee made up of three Mid Wales local authorities:
Cyngor Sir Ceredigion County Council
Cyngor Gwynedd Council ( for Meirionydd area)
Cyngor Sir Powys County Council The core aim of the consortium is to support the three member local authorities to develop and deliver a Regional Transport Plan. The Regional Transport Plan is a statutory plan required by Welsh Government. TraCC provides this support through its role to:
Development and review of shared local/ regional transport policies, plans and strategies (i.e. Regional Transport Plan)
Contribute to development of policies, plans and strategies of national government and other partners
Develop and manage regional highways and transportation grant funding programmes ( for bus services this is restricted to Ceredigion and Powys Council areas)
Prioritise and administer regional highways and transportation funding grants
Undertake monitoring, evaluation and reporting of impacts of regional plans and funding programmes (i.e. Regional Transport Plan Annual Monitoring Report)
Provide specialist support and advice on travel planning, active and environmentally sustainable travel across Mid Wales, and
Political lobbying in support of regional policies and funding programmes. Ceredigion County Council is the designated “Financial Host Authority” on behalf of TraCC, with the Strategic Director for Corporate Resources being the Section 151 Officer and Treasurer for the Joint Committee. Powys County Council was the “Financial Host Authority” until April 2010, at which point Ceredigion County Council assumed the role. Ceredigion County Council is also the “Host Authority” for the provision of the HR function to host Core Team employees and the Legal and Monitoring Officer roles on behalf of TraCC.
A summary of Trafnidiaeth Canolbarth Cymru’s (TraCC) financial performance for the year 2012/13. FINANCIAL PERFORMANCE COMPARED TO BUDGET 2012/13
2011/12 Actual
2012/13 Actual
2012/13 Original Budget
Variance to Budget
£ £ £ £ 327,636 Total Expenditure 508,932 425,000 (83,932)
327,636 Total Income 508,932 425,000 (83,932)
0 Net 0 0 0
The main variances between Original Budget and Actual Spend in 2012/13 were as follows:
1. Transfer of allocation to Local authorities for the funding of preliminary works
etc. (-£60,000)
2. Underspend on programme management and funds reallocated (-£22,700)
3. Additional funding received to enable TraCC to deal with the implication of the
Bus Funding Review (£62,500)
4. Additional funding to all Regional Consortia to meet implication of the Bus
Funding Review on Local Bus services (£106,000). This was redistributed to
Local authorities (Ceredigion and Powys).
EXPENDITURE Summary of expenditure incurred in the last two years
2012/13 £
2011/12 £
Employees 99,021 91,289 Premises Related Costs 0 24,023 Transport 2,999 5,889 Supplies and Services 406,912 195,376 Third Party Payments 0 11,059
Total 508,932 327,636
EXPLANATION FOR INCREASE 2011/12 & 2012/13
1. Additional allocation towards preliminary works
2. During 2012/13 the Welsh Government undertook a Bus Funding Review, the result of which meant that Regional Transport Consortia would be responsible, from April 2013 onwards, for the administration and management of funds paid directly to Local Authorities or administered by the Department of Transport. To negate the impact of these changes on local bus provision,
due to reducing grant levels at the end of the 2012/13 financial year, a sum of £1m was distributed between four Consortia to assist on reducing the impact of the changes, of which £106K was received for the TraCC area. Additional resources to meet set up costs were also received (£63k).
The following illustrates the impact following these changes. 2012/13
£ 2011/12
£ Core Funding Regional Transport Programme Bus Funding Review
166,929 172,767 169,236
205,822 121,814
0
Total 508,932 327,636
SOURCES OF FUNDING Summary of funding for the last two years: 2012/13
£ 2011/12
£ Government Grants 505,236 318,824 Other Income 3,696 8,812
Total 508,932 327,636
Increase is due to the funding received in relation to the additional duties and
channelling of grant undertaken (see note above).
FUTURE During 2012/13 a Bus Funding Review was undertaken by the Welsh Government,
the outcome of which was to give additional responsibilities to the four Regional
Transport Consortia in relation to bus provisions and funding. In addition, the role of
the Consortia was enhanced, in that they were to take full financial accountability of
funding in respect of transport programmes in addition to the strategic direction
previously undertaken. To this end it is estimated that there will be a ten-fold
increase in the financial activity of TraCC in 2013/14.
FURTHER INFORMATION Interested persons have a statutory right to inspect the Accounts, during the public inspection, before the annual audit is completed. Anyone wishing further information or explanation on the Accounts should contact:
Strategic Director for Corporate Resources Ceredigion County Council Canolfan Rheidol Rhodfa Padarn Llanbadarn Fawr Aberystwyth SY23 3UE Tel. No: (01970) 617911 E-mail: [email protected]
STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS
THE JOINT COMMITTEE’S RESPONSIBILITIES
The Joint Committee is required to:
make arrangements for the proper administration of its financial affairs and to
secure that one of its officers has the responsibility for the administration of
those affairs. In this Joint Committee, that officer is Ceredigion County
Council’s Strategic Director for Corporate Resources;
manage its affairs to secure economic, efficient and effective use of resources
and safeguard its assets;
approve the Statement of Accounts.
Chairman of the Joint Committee 23rd September 2014
THE RESPONSIBILITIES OF THE STRATEGIC DIRECTOR FOR CORPORATE
RESOURCES
The Strategic Director for Corporate Resources is responsible for the preparation of
the Joint Committee’s Statement of Accounts in accordance with proper practices as
set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the
United Kingdom (‘the code’).
In preparing this Statement of Accounts, the Strategic Director for Corporate
Resources has:
selected suitable accounting policies and then applied them consistently;
made judgements and estimates that were reasonable and prudent;
complied with the Code of Practice.
The Strategic Director of Corporate Resources has also:
kept proper accounting records which were up to date
taken reasonable steps for the prevention and detection of fraud and other
irregularities.
THE STRATEGIC DIRECTOR FOR CORPORATE RESOURCES CERTIFICATE
I certify that the Statement of Accounts gives a true and fair view of the financial
position of Trafnidiaeth Canolbarth Cymru (TRACC) at the accounting date and its
income and expenditure for the year ended 31st March 2013.
Strategic Director for Corporate Resources 23rd September 2014
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TRAFNIDIAETH
CONOLBARTH CYMRU (TRACC) JOINT COMMITTEE
I have audited the accounting statements and related notes of Trafnidiaeth Canolbarth Cymru (TraCC) for the year ended 31 March 2013 under the Public Audit (Wales) Act 2004.
Trafnidiaeth Canolbarth Cymru (TraCC) accounting statements comprise the Movement in Reserves Statement, the Comprehensive Income and Expenditure Statement and the Balance Sheet.
The financial reporting framework that has been applied in their preparation is applicable law and the Code of Practice on Local Authority Accounting in the United Kingdom 2012-13 based on International Financial Reporting Standards (IFRSs).
Respective responsibilities of the responsible financial officer and the independent auditor
As explained more fully in the Statement of Responsibilities for the Statement of Accounts set out on page 6, the responsible financial officer is responsible for the preparation of the statement of accounts, which gives a true and fair view.
My responsibility is to audit the accounting statements and related notes in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require me to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the accounting statements
An audit involves obtaining evidence about the amounts and disclosures in the accounting statements and related notes sufficient to give reasonable assurance that the accounting statements and related notes are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to Trafnidiaeth Canolbarth Cymru (TraCC) circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the responsible financial officer and the overall presentation of the accounting statements and related notes.
In addition, I read all the financial and non-financial information in the Explanatory Foreword to identify material inconsistencies with the audited accounting statements and related notes and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements or inconsistencies, I consider the implications for my report.
Opinion on the accounting statements of Trafnidiaeth Canolbarth Cymru (TraCC)
In my opinion the accounting statements and related notes:
give a true and fair view of the financial position of Trafnidiaeth Canolbarth Cymru (TraCC) as at 31 March 2013 and of its income and expenditure for the year then ended; and
have been properly prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2012-13.
Opinion on other matters
In my opinion, the information contained in the Explanatory Foreword for the financial year for which the accounting statements and related notes are prepared is consistent with the accounting statements and related notes.
Matters on which I report by exception
I have nothing to report in respect of the Annual Governance Statement on which I report to you if, in my opinion, it does not reflect compliance with ‘Delivering Good Governance in Local Government: Framework’ published by CIPFA/SOLACE in June 2007, or if the statement is misleading or inconsistent with other information I am aware of from my audit.
Certificate of completion of audit
I certify that I have completed the audit of the accounts of Trafnidiaeth Canolbarth Cymru in accordance with the requirements of the Public Audit (Wales) Act 2004 and the Code of Audit Practice issued by the Auditor General for Wales.
Signature………………………………….. Date…………………………………………
Name: Anthony Barrett Address: Wales Audit Office
Appointed Auditor 24 Cathedral Road
Cardiff
CF11 9LJ
Electronic publication of financial statements
The maintenance and integrity of the Trafnidiaeth Canolbarth Cymru website is the responsibility of the Council. The work carried out by the auditor does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the Statement of Accounts since they were initially presented on the web site.
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT (I&E)
This Statement shows the accounting cost in the year of providing services in
accordance with generally accepted accounting practices, rather than the amount
to be funded from taxation.
Gross Exp Gross Inc Net Exp Gross Exp Gross Inc Net Exp
£ £ £ £ £ £
Expenditure
91,289 0 91,289 Employees 99,021 0 99,021
24,023 0 24,023 Premises Related Costs 0 0 0
5,889 0 5,889 Transport 2,999 0 2,999
195,376 0 195,376 Supplies & Services 406,912 0 406,912
11,059 0 11,059 Third Party Payments 0 0 0
327,636 0 327,636 TOTAL EXPENDITURE 508,932 0 508,932
Income
0 (318,823) (318,823) Government Grants 0 (505,236) (505,236)
0 (1,500) (1,500) Other 0 (3,696) (3,696)
0 (7,313) (7,313) Contributions Other Local
Authority's
0 0 0
0 (327,636) (327,636) TOTAL INCOME 0 (508,932) (508,932)
327,636 (327,636) 0 NET OPERATING COST 508,932 (508,932) 0
2012/132011/12
MOVEMENT IN RESERVES STATEMENT
The Trafnidiaeth Canolbarth Cymru’s (TraCC) Joint Committee does not operate
a surplus/ deficit on the provision of its services. It has no reserves.
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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BALANCE SHEET
This statement shows the value of assets and liabilities recognised by the Joint
Committee at the 31st March 2013.
31st March 2012 31st March 2013
£ £
CURRENT ASSETS
180,368 Short Term Debtors 230,765
180,368 230,765
CURRENT LIABILITIES
(180,368) Short Term Creditors (230,765)
(180,368) (230,765)
0 TOTAL ASSETS LESS LIABILITIES 0
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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NOTES TO THE STATEMENT OF ACCOUNTS
1. ACCOUNTING POLICIES
i. General Principles
The Statement of Accounts summarises the Joint Committee’s transactions for
the 2012/13 financial year and its position at the year-end of 31st March 2013.
The Joint Committee is required to prepare an annual Statement of Accounts by
the Accounts and Audit (Wales) Regulations 2005, and those Regulations require
the accounts to be prepared in accordance with proper accounting practices.
These practices primarily comprise the Code of Practice on Local Authority
Accounting in the United Kingdom 2012/13 and the Service Reporting Code of
Practice for Local Authorities 2012/13, supported by International Financial
Reporting Standards (IFRS).
The accounting convention adopted in the Statement of Accounts is principally
historical cost, modified by the revaluation of certain categories of non-current
assets and financial instruments.
ii. Accruals of Income and Expenditure
Activity is accounted for in the year that it takes place, not simply when cash
payments are made or received. In particular:
Revenue from the sale of goods is recognised when the Joint Committee
transfers the significant risks and rewards of ownership to the purchaser
and it is probable that economic benefits or service potential associated
with the transaction will flow to the Joint Committee.
Revenue from the provision of services is recognised when the Joint
Committee can measure reliably the percentage of completion of the
transaction and it is probable that economic benefits or service potential
associated with the transaction will flow to the Joint Committee.
Supplies are recorded as expenditure when they are consumed – where
there is a gap between the date supplies are received and their
consumption, they are carried as inventories on the Balance Sheet.
Expenses in relation to services received (including services provided by
employees) are recorded as expenditure when the services are received
rather than when payments are made.
Where revenue and expenditure have been recognised but cash has not
been received or paid, a debtor or creditor for the relevant amount is
recorded in the Balance Sheet. Where debts may not be settled, the
balance of debtors is written down and a charge made to revenue for the
income that might not be collected.
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iii. Exceptional Items
When items of income and expenditure are material, their nature and amount is
disclosed separately, either on the face of the Comprehensive Income and
Expenditure Statement or in the notes to the accounts, depending on how
significant the items are to an understanding of the Joint Committee’s financial
performance.
iv. Non-Current Assets and Charges to Revenue for Non-Current
Assets
Trafnidiaeth Canolbarth Cymru (TraCC) Joint Committee does not own any non-
current assets. Whilst the Joint Committee has the use of land, buildings,
vehicles, plant and equipment, ownership remains with the member local
authorities. The relevant authority finances enhancements and major repairs to
these assets. No charge is made to the Joint Committee for the use of these
assets
v. Employee Benefits
Officers undertaking the Joint Committee’s Core Team activities are employed
directly by Ceredigion County Council on behalf of the Joint Committee. These
officers are eligible for membership of the Local Government Pension Scheme,
which is a final salary defined benefit scheme.
The Council’s Local Government Pension Scheme employer contributions, in
respect of officers employed on the Joint Committee’s behalf, are included in the
Joint Committee’s net cost of service.
The requirements of International Accounting Standard 18 – Employee Benefits
(IAS 18), relating to staff carrying out the Joint Committees Core Team activities
are fully reflected in the accounts of Ceredigion County Council. The Council’s
accounts reflect the underlying commitment that the Council have in the long term
to pay retirement benefits to their employees and to make up and shortfall in net
assets in the pension fund.
vi. Prior Period Adjustments, Changes in Accounting Policies and
Estimates and Errors
Prior period adjustments may arise as a result of a change in accounting policies
or to correct a material error. Changes in accounting estimates are accounted for
prospectively, i.e. in the current and future years affected by the change and do
not give rise to a prior period adjustment.
Changes in accounting policies are only made when required by proper
accounting practices or the change provides more reliable or relevant information
about the effect of transactions, other events and conditions on the Joint
Committee’s financial position or financial performance. Where a change is
made, it is applied retrospectively (unless stated otherwise) by adjusting opening
balances and comparative amounts for the prior period as if the new policy had
always been applied.
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Material errors discovered in prior period figures are corrected retrospectively by
amending opening balances and comparative amounts for the prior period.
vii. Events After the Reporting Period
Events after the Balance Sheet date are those events, both favourable and
unfavourable, that occur between the end of the reporting period and the date
when the Statement of Accounts is authorised for issue. Two types of events can
be identified:
those that provide evidence of conditions that existed at the end of the
reporting period – the Statement of Accounts is adjusted to reflect such
events
those that are indicative of conditions that arose after the reporting period –
the Statement of Accounts is not adjusted to reflect such events, but where
a category of events would have a material effect, disclosure is made in the
notes of the nature of the events and their estimated financial effect.
viii. Government Grants and Contributions
Whether paid on account, by instalments or in arrears, government grants and
third party contributions (including donations) are recognised as due to the Joint
Committee when there is reasonable assurance that:
the Joint Committee will comply with the conditions attached to the
payments, and
the grants or contributions will be received.
Amounts recognised as due to the Joint Committee are not credited to the
Comprehensive Income and Expenditure Statement until conditions attached to
the grant or contribution have been satisfied. Conditions are stipulations that
specify that the future economic benefits or service potential embodied in the
asset acquired using the grant or contribution are required to be consumed by the
recipient as specified, or future economic benefits or service potential must be
returned to the transferor.
Monies advanced as grants and contributions for which conditions have not been
satisfied are carried in the Balance Sheet as creditors. When conditions are
satisfied, the grant or contribution is credited to the relevant service line
(attributable revenue grants and contributions) in the Comprehensive Income and
Expenditure Statement.
ix. Overheads and Support Services
The costs of overhead and support services are charged to those that benefit from
the supply or service in accordance with the costing principles of the CIPFA
Service Reporting Code of Practice 2012/13 (SeRCOP). The relevant bases of
allocation relate, where possible, to actual usage of the service.
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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x. Provisions, Contingent Liabilities and Contingent Assets
Provisions
Provisions are made where an event has taken place that gives the Joint
Committee a legal or constructive obligation that probably requires settlement by
a transfer of economic benefits or service potential, and a reliable estimate can be
made of the amount of the obligation. Provisions included in the accounts may not
be legally enforceable and may only be inferred from a set of facts in a particular
situation therefore the inclusion of them in the accounts does not mean that
liability has been accepted.
Provisions are charged as an expense to the Comprehensive Income and
Expenditure Statement in the year that the Joint Committee becomes aware of the
obligation, and are measured at the best estimate at the balance sheet date of the
expenditure required to settle the obligation, taking into account relevant risks and
uncertainties.
When payments are eventually made, they are charged to the provision carried in
the Balance Sheet. Estimated settlements are reviewed at the end of each
financial year – where it becomes less than probable that a transfer of economic
benefits will now be required (or a lower settlement than anticipated made), the
provision is reversed and credited back to the Comprehensive Income and
Expenditure Statement.
Where some or all of the payment required to settle a provision is expected to be
recovered from another party (e.g. from an insurance claim), this is only
recognised as income in the Comprehensive Income and Expenditure Statement
if it is virtually certain that reimbursement will be received if the Joint Committee
settles the obligation.
Contingent Liabilities
A contingent liability arises where an event has taken place that gives the Joint
Committee a possible obligation whose existence will only be confirmed by the
occurrence or otherwise of uncertain future events not wholly within the control of
the Joint Committee. Contingent liabilities also arise in circumstances where a
provision would otherwise be made but either it is not probable that an outflow of
resources will be required or the amount of the obligation cannot be measured
reliably.
Contingent liabilities are not recognised in the Balance Sheet but disclosed in a
note to the accounts.
Contingent Assets
A contingent asset arises where an event has taken place that gives the Joint
Committee a possible asset whose existence will only be confirmed by the
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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occurrence or otherwise of uncertain future events not wholly within the control of
the Joint Committee.
Contingent assets are not recognised in the Balance Sheet but disclosed in a note
to the accounts where it is probable that there will be an inflow of economic
benefits.
xi. Value Added Tax (VAT)
The Accounts have been prepared on a VAT exclusive basis, to the extent that it
is recoverable.
2. MATERIAL ITEMS OF INCOME AND EXPENDITURE
The Joint Committee does not have any material items of Income and
Expenditure to report that require any further explanation.
3. OVERHEADS AND SUPPORT SERVICES
Ceredigion County Council is the designated “Financial Host Authority” on behalf
of the Joint Committee. A charge is made for Accountancy support for the
financial management role which is reflected in the Income and Expenditure
statement under Supplies and Services.
Ceredigion County Council is also the “Host Authority” for the provision of the HR
function to host Core Team employees and the Legal and Monitoring Officer roles
on behalf of the Joint Committee. This involves Ceredigion County Council
directly employing officers on behalf of the Joint Committee to provide central
support services for TraCC’s governance and decision-making arrangements.
These costs are reflected in the Income and Expenditure Statement on the
Employees line.
Travel expenses incurred by the officers in carrying out their duties are included in
the Income and Expenditure Statement on the Transport line (£2,999).
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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4. INCOME AND EXPENDITURE ANALYSIS
Core Team
Funding
Regional
Transport
Programme
Bus
Funding
Review Total
£ £ £ £
Expenditure
Employees 96,447 0 2,574 99,021
Transport 2,999 0 0 2,999
Supplies and Services 67,483 172,767 166,662 406,912
Third Party Payments 0 0 0
Total Expenditure 166,929 172,767 169,236 508,932
Income
Government Grants (165,000) (171,000) (169,236) (505,236)
Other (1,929) (1,767) (3,696)
Total Income (166,929) (172,767) (169,236) (508,932)
Net Expenditure 0 0 0 0
5. DEBTORS
31st March 2013 31st March 2012
£ £
Central Government Bodies 230,765 180,368
230,765 180,368
6. CREDITORS
31st March 2013 31st March 2012
£ £
* Other Local Authorities (143,883) (150,478)
Central Government Bodies (47,079) (24,023)
Other Entities and Individuals (39,803) (5,867)
(230,765) (180,368)
* Trafnidiaeth Canolbarth Cymru (TraCC) Joint Committee does not operate its
own bank account. All its cash transactions are processed through Ceredigion
County Council’s bank account. Other Local Authorities for 31st March 2013
includes a creditor of £143,883 (£136,876 at 31st March 2012) to reflect the cash
due to Ceredigion County Council.
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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7. MEMBERS ALLOWANCES
The TraCC Board consists of six County Councillors, two from each of the
participating local authorities.
The Joint Committee (TraCC) does not pay these member’s salaries or expenses.
Ceredigion County Council, Powys County Council and Gwynedd Council pay the
salaries and expenses for their respective two members.
8. OFFICERS’ REMUNERATION
The Code of Practice on Authority Accounting in the United Kingdom 2013/14,
requires disclosure of employees whose remuneration for the year (excluding
employers pension contributions), exceeds £50,000. The Joint Committee has no
employees whose remuneration for the year exceeds £50,000.
9. EXTERNAL AUDIT COSTS
The Statement of Accounts have been produced for both the Financial Years
2012/13 and 2013/14, for issue on 30th June 2014. The costs for the audit of
both these Statement of Accounts by Ceredigion County Council’s external
auditors will be incurred during the year 2014/15.
10. GRANT INCOME
The Joint Committee credited the following grants, contributions and donations to
the Comprehensive Income and Expenditure Statement in 2012/13.
£ WG -Regional Transport Plan – Core funding 125,000 WG – TraCC led projects 171,000 WG – Sustainable Travel Centre 40,000 WG – Bus Funding Review 62,500 WG – Additional LTSG 106,736
505,236
WG = Welsh Government
11. RELATED PARTY TRANSACTIONS
The Joint Committee is required to disclose material transactions with related
parties – bodies or individuals that have the potential to control or influence the
Joint Committee or to be influenced by the Joint Committee. Disclosure of these
transactions allows readers to assess the extent to which the Joint Committee
might have been constrained in its ability to operate independently or might have
secured the ability to limit another party’s ability to bargain freely with the Joint
Committee.
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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Central Government
Central government has significant influence over the general operations of the
Joint Committee – it is responsible for providing the statutory framework within
which the Joint Committee operates, provides the majority of its funding in the
form of grants and prescribes the terms of many of the transactions that the Joint
Committee has with other parties. Grants received from government departments
are set out in Note 10.
Local Authorities
Ceredigion County Council, Powys County Council and Gwynedd Council are the
participating authorities that make up the TraCC consortium. Material
transactions with these three Council’s in the form of providing Grants funding is
detailed elsewhere in the accounts.
Members
Members on the TraCC Joint Committee’s board have direct control over the Joint
Committee’s financial and operating activities. There are no financial transactions
between these members and the Joint Committee as their salaries are paid by
their Local Authority (Note 9).
12. DEFINED BENEFIT CONTRIBUTION SCHEMES
Officers employed by Ceredigion County Council in undertaking the Joint
Committee’s Core Team activities can participate in the Local Government
Pension Scheme, a defined benefits statutory scheme, administered by
Carmarthenshire County Council. This is a funded defined benefit final salary
scheme, meaning that the Council and employees pay contributions into the fund,
calculated at a level intended to balance the pension liabilities with investment
assets.
The Joint Committees Income and Expenditure Account, includes employer’s
contributions paid into the Local Government Scheme within the Employees Costs
line.
Full details of the scheme can be found within Ceredigion County Council’s
2012/13 Statement of Accounts.
13. EVENTS AFTER THE REPORTING PERIOD
There are no post Balance Sheet events for 2012/13.
14. AUTHORISATION OF ACCOUNTS FOR ISSUE
The Statement of Accounts is authorised for issue by the Strategic Director for
Corporate Resources on 23rd September 2014.
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
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ANNUAL GOVERNANCE STATEMENT
This Statement has been prepared in accordance with guidance produced by the
Chartered Institute of Public Finance and Accountancy (C.I.P.F.A.) and the
Society of Local Authority Chief Executives and Senior Managers (S.O.L.A.C.E.),
entitled the ‘Delivering Good Governance in Local Governance Framework’. It
embraces the elements of internal financial control required by the ‘Code of
Practice on Local Authority Accounting in the United Kingdom’.
Scope of Responsibility
Trafnidiaeth Canolbarth Cymru (TraCC) (the Committee) is responsible for
ensuring that its business is conducted in accordance with the law and to proper
standards, and that public money is safeguarded and properly accounted for, and
used economically, efficiently and effectively. The Committee also has a duty to
make arrangements to secure continuous improvement in the way in which its
functions are exercised, having regard to a combination of economy, efficiency
and effectiveness.
In discharging this overall responsibility, the Committee is responsible for putting
in place proper arrangements for the governance of its affairs and facilitating the
effective exercise of its functions which includes arrangements for the
management of risk.
The Purpose of the Governance Framework
The governance framework comprises the systems and processes, and culture
and values, by which the Committee is directed and controlled and its activities
through which it accounts to, engages with and leads the community. The system
of internal control is a significant part of that framework. The system of internal
control is based on an ongoing process designed to identify and prioritise the risks
to the achievement of the Committee’s policies, aims and objectives, to evaluate
the likelihood of those risks being realised and the impact should they be realised,
and to manage them effectively.
The Governance Framework
The Joint Committee is currently governed through the Joint Agreement dated 3
August 2009 which establishes Ceredigion County Council as the Administrative
authority and Powys County Council as the financial host, whilst setting out how
the Committee operates and makes decisions. However on 12 March 2010 the
Joint Committee approved a change to the financial management in that
Ceredigion County Council would assume this role. No amendment to the Legal
Agreement was necessary.
All reports considered by the Committee and the minutes of decisions taken are,
unless confidential, made fully available on the TraCC and Ceredigion County
Council websites.
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20
The Committee is directed and controlled by the Governance Framework through
the systems and processes that are in place. This Framework enables the
Committee to monitor the achievement of its strategic objectives and to consider
whether those objectives have led to the delivery of appropriate, cost-effective
services.
The system of internal control is a significant part of that framework and is
designed to manage risk to a reasonable level. It cannot eliminate all risk of
failure to achieve policies, aims and objectives and can therefore only provide
reasonable assurance of effectiveness. The system of internal control is based
on an ongoing process designed to identify and prioritise the risks to the
achievement of the Joint Committee policies, aims and objectives, to evaluate the
likelihood of those risks being realised and the impact should they be realised,
and to manage them efficiently, effectively and economically.
The Joint Committee utilises the following in its governance duties:
Ceredigion County Council’s accounting procedures and Financial
Regulations. The Authority’s Strategic Director for Corporate Resources is
responsible for the proper administration of the Committee’s financial
affairs, as required by Section 151 of the Local Government Act 1972.
Procedures for tendering and contract letting are included in Ceredigion
County Council’s Financial Regulations.
Ceredigion County Council’s Treasury Management arrangements, which
follow professional practice and are subject to annual reviews by
Ceredigion County Council’s Audit Committee and Council.
Ceredigion County Council’s Head of Legal, Human Resources and
Democratic Services is the designated ‘Monitoring Officer’ in accordance
with the Local Government and Housing Act 1989, and ensures
compliance with established policies, procedures, laws and regulations.
Ceredigion County Council’s Audit Committee considers the effectiveness
of the Council’s Governance arrangements, as it applies to the Joint
Committee, through a planned work programme. It monitors the work of
auditors (internal and external) and inspectors.
Ceredigion County Council’s Internal Audit staff operate to the standards
set out in the ‘Code of Practice for Internal Audit in Local Government in
the United Kingdom 2006’ produced by C.I.P.F.A. and its role and status is
set out in Ceredigion County Council’s Internal Audit Terms of Reference.
The Chief Internal Auditor provides reports to the Audit Committee of a
summary of audit findings and activity, and also in the annual report to the
Audit Committee gives an opinion on the overall adequacy and
effectiveness of Ceredigion County Council’s control environment. There
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
21
were no internal audits planned or undertaken within the year for the Joint
Committee
Ceredigion County Council’s Human Resources and Health and Safety
policies
Ceredigion Council Council’s Data Protection policy and also has
procedures in place to meet its responsibilities under the Freedom of
Information Act and the Regulation of Investigatory Powers Act 2000.
Review of Effectiveness
Ceredigion County Council has conducted an annual review of the
effectiveness of its governance framework during 2012/13 including the
system of internal control. The review of effectiveness is informed by
managers within the Authority who have responsibility for the development and
maintenance of the governance environment and also by comments made by
the external auditors and other inspection agencies. Leadership Group and
the Audit Committee have both been involved in the review.
The effectiveness of the governance framework draws on evidence and
assurances from:
Internal and external audit and inspection
Financial Controls
Risk and Performance Management
Legal and ethical standards
Strategic Directors and other senior management, including the s151 Officer and the Monitoring Officer
Audit and Scrutiny Committees
Ensuring the Joint Committee’s financial management arrangements
conform with the governance requirements of the CIPFA Statement on The
Role of the Chief Financial Officer in Local Government
Ceredigion County Council’s Strategic Director for Corporate Resources is the
Joint Committee’s Chief Financial Officer and:
Reports directly to Ceredigion’s Chief Executive and is a key member of Ceredigion’s Leadership Group;
Leads and directs a finance function that is resourced to be fit for purpose;
Is professionally qualified and suitably experienced.
Significant Control Issues
Trafnidiaeth Canolbarth Cymru operates within the financial control environment
operated by Ceredigion County Council. No Internal Audit coverage was carried
Trafnidiaeth Canolbarth Cymru (TraCC) Statement of Accounts 31 March 2013
22
out or planned in 2012/13 in respect of TraCC. No significant issues have been
identified when completing the above statement.
Signed:
Cllr A Williams Chair of Joint Committee
W Gwyn Jones Strategic Director for Corporate Resources
……………………………………………
……………………………………………
Date: 25/06/2014 Date: 26/06/2014